4 Dec

Long-term fixed rate products appeal to Brits

Long-term fixed rate products appeal to Brits

Britons have a "considerable appetite" for long-term fixed rate mortgages of the kind recently endorsed by the Chancellor of the Exchequer, it has been revealed.

According to figures from the Council of Mortgage Lenders, 42 per cent of borrowers would opt for a fixed-rate deal if they were taking out a mortgage deal, with 43 per cent of this number opting for a medium to long-term package.

Of these, some 39 per cent said the overwhelming factor in choosing a long-term fixed rate deal was the stability they afford.

However, according to Rob Pannel, head of research at the CML, further action is needed from the government if take up of long-term products is to increase any time soon.

He said: "In the absence of a major policy intervention from the government, the take up of long-term fixed rates looks set to remain relatively small for the foreseeable future and the most we are likely to see is some movement from short-term to medium-term fixed rates."

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